State sues supplier for undelivered grader

GOVERNMENT has sued Remus Industrial Suppliers Limited and its shareholders in the Lusaka High Court for allegedly neglecting to deliver a Caterpillar motor grader for the Rural Road Unit in the Office of the President.

Government dragged Remus Industrial Suppliers Limited as the first defendant being a company registered under the Companies Act Cap 71 of the laws of Zambia, Remmy Mubanga Musonda and Lomuthunzi Mbuzi Musonda as the second and third defendants who are believed to be directors or shareholders of the said company.

Attorney General Likando Kalaluka indicated in a statement of claim filed in the High Court that the defendants were awarded a contract through a tender process to supply and deliver a Caterpillar motor grader for the Rural Road Unit in the Office of the President on the Copperbelt Province.

He claimed that the said contract was concluded on December 16, 2013 at a total tender of K1,628,431.20 (old currency) and that the amount was paid to the defendants on December 30, 2013.

Mr Kalaluka claimed that the terms of the contract was that the delivery of the grader was to be made within six to eight weeks.

He however, claimed that the defendants failed to deliver the grader within the stipulated period despite being told to do so and that the contact was terminated as per terms and conditions through a letter dated July 24, 2014.

The defendants were requested to refund K1, 628,431.20 (old currency) but that only K100, 000 had been repaid.

“The defendants failed and or neglected to deliver the grater within the stipulated period despite being requested to do so.

Thus on July 22, 2014 the Copperbelt provincial procurement committee of the Office of the President Copperbelt Province was compelled and decided to consequently terminate the contract as per terms and conditions at which the defendants were duly informed of the decision through a letter dated July 24, 2014,” he said.

Mr Kalaluka claimed that despite being reminded to refund the said money in a letter dated March 3, 2017 the defendants have refused or neglected to pay all monies owed to Government without justifiable reason.

And now Government demands recovery of K1,528,431.60 (old currency), damages for breach of contract at bank rate with effect from December 30, 2013 until full payment, costs and any other relief that the court may deem fit.